SECURITY CAPITAL U S REALTY
DEFA14A, 2000-10-19
REAL ESTATE INVESTMENT TRUSTS
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                                SCHEDULE 14A
                               (Rule 14a-101)

                  INFORMATION REQUIRED IN PROXY STATEMENT

                          SCHEDULE 14A INFORMATION

        Proxy Statement Pursuant to Section 14(a) of the Securities
                   Exchange Act of 1934 (Amendment No. )

Filed by the Registrant [X]
Filed by a Party other than the Registrant [  ]

Check the appropriate box:
[ ]  Preliminary Proxy Statement          [ ]  Confidential, For Use of the
                                               Commission Only (as permitted
                                               by Rule 14a-6(e)(2))
[ ]  Definitive Proxy Statement
[ ]  Definitive Additional Materials
[X]  Soliciting Material Under Rule 14a-12

                        Security Capital U.S. Realty
              (Name of Registrant as Specified In Its Charter)

                     ---------------------------------
   Name of Person(s) Filing Proxy Statement, If Other Than the Registrant)

Payment of Filing Fee (Check the appropriate box):

[X]  No fee required.
[ ]  Fee computed on table below per Exchange Act Rule 14a-6(i)(1) and 0-11.

     (1)    Title of each class of securities to which transaction
            applies:

           --------------------------------------------------------------
     (2)   Aggregate number of securities to which transaction applies:

           ---------------------------------------------------------------
     (3)   Per unit price or other underlying value of transaction computed
           pursuant to Exchange Act Rule 0-11 (set forth the amount on
           which the filing fee is calculated and state how it was
           determined):

           ---------------------------------------------------------------
     (4)   Proposed maximum aggregate value of transaction:

           ---------------------------------------------------------------
     (5)   Total fee paid:

           --------------------------------------------------------------
[ ]  Fee paid previously with preliminary materials:
           --------------------------------------------------------------
[ ]  Check box if any part of the fee is offset as provided by Exchange
     Act Rule 0-11(a)(2) and identify the filing for which the offsetting
     fee was paid previously. Identify the previous filing by registration
     statement number, or the form or schedule and the date of its filing.
     (1)   Amount previously paid:

           ----------------------------------------------------------------
     2)    Form, Schedule or Registration Statement No.:

           ----------------------------------------------------------------
     3)    Filing Party:

           ----------------------------------------------------------------
     4)    Date Filed:

           -----------------------------------------------------------------




<PAGE>


Set forth below is the text of a form of letter sent by Security Capital
U.S. Realty to certain shareholders on or about October 16, 2000.

                                Form Letter

Date

Name
Title
Address


Dear ______:


         On 26 September 2000, SC-U.S. Realty and Security Capital
announced that they had agreed to combine the two companies. Investor and
analyst reaction to the transaction has been positive.

         We strongly believe this transaction will result in significant
shareholder value for both shareholder groups. Specifically, this
transaction will have important benefits to SC-U.S. Realty shareholders,
which include:

        o     Ownership in a company which will have greater liquidity,
              an equity market capitalisation of over $3 billion and direct
              control of companies with a total market capitalisation $26.2
              billion
        o     SC-U.S. Realty's shareholders receive a premium to the
              company's stock price at market close on 25 September 2000,
              the day prior to the announcement, as well as increased net
              asset value (NAV) on an SCZ stock-equivalent basis
        o     Elimination of a tier of operating expenses embedded at SC-U.S.
              Realty
        o     Financial flexibility for the combined company to aggressively
              repurchase its stock and increase shareholder value in the
              process

         Attached for your review is the preliminary prospectus filed with the
United States Securities and Exchange Commission (SEC) on October 13, 2000.
I would appreciate it if you would call me with any questions.

                                            Sincerely,
                                            SC-U.S. Realty



                                            Laura L. Hamilton
                                            Vice President






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